The present invention relates generally to a method and system of co-branding an electronic payment system and more particularly to a method and system for co-branding an on-line electronic payment platform, such as an electronic purse or wallet.
Currently, financial institutions, such as banks, issue plastic credit cards to card holders which are branded with the financial institution""s brand name as well as co-branded with the brand name of a merchant, such as an airline. Typically, such co-branded credit cards are issued in connection with an incentive awards program sponsored in whole or in part by the merchant. For example, each use of the credit card by the card holder for a transaction entitles the card holder to receive an incentive award corresponding to the value of the transaction in which the credit card is used.
A card holder may receive, for example, a number of frequent flyer miles in an airline""s frequent flyer program equivalent to the dollar amount of each transaction in which the credit card is used by the card holder. The card holder receives periodic invoices from the financial institution for the credit card transactions and periodic reports from the airline of accumulated frequent flyer miles, including actual miles flown and credit card transaction awards.
Presently, such systems are limited to physical payment systems in which plastic credit cards are used and have no application to electronic commerce in which an electronic payment mechanism, such as an electronic purse or wallet, is used for payment in a transaction in an on-line environment. Electronic wallets can have varying modes of operation. An electronic wallet can be located, for example, at a merchant""s site, or can be merchant-oriented and be located, for example, at a third party""s site. A single electronic wallet can be used for several merchants, or separate electronic wallets can be provided for each merchant that use common software to carry out the wallets"" functions. Electronic wallets can be consumer oriented and used by the consumer to pay for goods or services at various merchants"" sites.
In a typical web-based transaction, a consumer at the consumer""s personal computer (PC), uses the consumer""s PC browser to access a merchant""s website. The consumer selects goods or services that the consumer wishes to purchase, and the merchant may provide the consumer with an order or payment form to fill out, which asks for payment information, such as a credit card number, expiration date, and shipping information. Typically, the consumer types in the information needed by the merchant each time the consumer wishes to place an order. An electronic wallet enables the user to avoid typing in such information over and over again by storing the consumer""s information, such as the consumer""s credit card information and preferred shipping information in the electronic wallet.
However, the co-branding and incentive award aspects of plastic credit cards are presently limited to physical payment systems and have no application to electronic payment systems in which credit card information is stored for the consumer in the electronic wallet.
It is a feature and advantage of the present invention to provide a method and system for co-branding an on-line electronic payment platform, such as an electronic wallet, owned and controlled by a financial institution, such as a bank, which enables the financial institution to promote the co-branded electronic wallet with the brands of the financial institution, as well as the brands of any number of cooperating merchants.
It is a further feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet which is owned and controlled in part by the financial institution and one or more cooperating merchants.
It is another feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet, which enables the financial institution to control accounts, linkages to accounts, and credit cards or other payment vehicles that are put into the co-branded electronic wallet.
It is an additional feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet for use in an on-line or Internet payment system, which makes use, for example, of a digital bearer certificate architecture.
It is also a feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet for use in a network based environment in which all the functionality of the electronic resides on a financial institution server.
It is a still further feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet in which the electronic payment system is transparent or seamless to a consumer.
It is still another feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet which provides incentive or award points to the consumer for each use of the electronic wallet.
It is a further feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet which provides incentive or award points to the consumer that are funded by one or more cooperating merchants.
It is an additional feature and advantage of the present invention to provide a method and system for co-branding an electronic wallet which gives the consumer an option to make payments using a payment instrument, such as the consumer""s credit card, stored in the electronic wallet or by redeeming the consumer""s incentive or award points.
To achieve the stated and other features, advantages and objects, an embodiment of the method and system for co-branding an electronic wallet of the present invention makes use of computer hardware and software, such as merchant and consumer scale group servers, the consumer""s PC, and a merchant""s website server coupled to one another over the Internet, as well as a rewards database coupled to a rewards merchant interface of the merchant scale group server and to a rewards account feed of the consumer scale group server.
Another aspect for an embodiment of the method and system for co-branding an electronic wallet of the present invention also makes use of computer hardware and software, such as the merchant and consumer scale group servers, the consumer""s PC, and merchant""s website server coupled over the Internet, as well as electronic cash and rewards merchant modules, coupled to the merchant scale group server and to an electronic cash token clearing house, and an electronic cash purse server and rewards point server coupled to the consumer scale group server.
The method and system for an embodiment of the present invention includes, for example, providing an on-line access for a user, such as the consumer, to the electronic payment platform co-branded by the financial institution, such as the bank, and at least one or any number of additional cooperating merchants or partners. The co-branded electronic payment platform is used by the user for making a payment, in connection with which the user is given an incentive award which is automatically stored for the user and which the user is then allowed to redeem.
An embodiment of the present invention includes, for example, providing the on-line access to a co-branded Internet payment system in which payment information is stored for the user, for example, on a wallet server. The stored payment information relates to an account of the user, such as a credit card account, a debit card account, a checking account, or a savings account. An aspect the co-branded electronic payment platform includes, for example, a digital bearer certificate payment system. In the digital bearer certificate aspect, digital payment tokens are stored for the user, for example, on an electronic cash purse server. In this aspect, the digital payment tokens are pre-allocated from an account of the user, such as the user""s credit card, debit card, checking, or savings account.
The co-branded electronic payment platform for an embodiment of the present invention is controlled at least in part by the financial institution, with the financial institution controlling, for example, one or more of accounts, linkages to accounts, and payment instruments. In an aspect of an embodiment of the present invention, the co-branded electronic payment platform is also controlled in part by one or more of the cooperating merchants. In such aspect, one or more of the cooperating merchants can control, for example, a link to the cooperating merchant""s website or award point database.
In an embodiment of the present invention, a co-branded electronic wallet application for the co-branded electronic payment platform resides on a wallet server of the financial institution or a wallet server provided for the financial institution by another party. The wallet server stores the user""s payment information, such as the payment information related to the user""s credit card, debit card, checking or savings account. In the digital bearer certificate aspect, an electronic cash purse server of the wallet server stores the digital payment tokens for the user pre-allocated from the user""s credit card, debit card, checking or savings account.
In order to make a payment using the co-branded electronic payment platform for an embodiment of the present invention, the user invokes the co-branded electronic wallet application, and a co-branded electronic wallet window is displayed for the user by the wallet server. The user enters a selection to make the payment with the user""s payment information stored by the wallet server, and the wallet server automatically sends the user""s payment information to a merchant""s website server for the user. The payment information sent by the wallet serve includes, for example, the user""s stored credit card, debit card, checking, or savings account related information or the stored digital payment tokens pre-allocated for the user from the user""s credit card, debit card, checking, or savings account.
In an embodiment of the present invention, for each use of the co-branded electronic payment platform, an incentive award, such as reward points, is stored for the user in a rewards database or by a rewards points server of the wallet server. The incentive award is calculated, for example, on the amount of the payment made by the user and is sponsored by one or more of the cooperating merchants or by one or more of the cooperating merchants together with the financial institution.
An embodiment of the co-branded electronic payment platform of the present invention also includes allowing the user to redeem the stored incentive award. In order to redeem the incentive award, the user invokes the co-branded electronic wallet application of the wallet server, and the co-branded wallet window is displayed for the user by the wallet server. The co-branded wallet window displays an option for the user to redeem the stored incentive award, for example, by making the payment to a merchant""s website server. The user can then redeem the stored incentive award by entering a selection to make the payment from the stored incentive award.
Additional objects, advantages and novel features of the invention will be set forth in part in the description which follows, and in part will become more apparent to those skilled in the art upon examination of the following, or may be learned by practice of the invention.